- Crypto whales have been dumping BTC over the last year.
- BTC’s price is down 58% from its ATH that was set in November 2021.
- Crypto is unappealing to large investors due to high levels of uncertainty.
Insights from the blockchain analytics firm Santiment has shown that Bitcoin (BTC) whales have been dumping their holdings of the crypto market leader over this past year. The report also touches on where these funds have been moving since May of this year.
According to the insights report, large institutional holders and massive whale addresses have been dumping their BTC holdings for over a year now. This follows after they had been in an accumulation phase up until late last year.
Market caps of USDT and USDC (Source: CoinMarketCap)
Fast-forward a year later, BTC’s price is down 58% from its all-time high (ATH) that it set last year in November. The market is now waiting for early signs that whales will jump back in to push prices up once again after this prolonged period of losses.
One thing that was giving traders hope was the fact that large stablecoin market caps were growing through May of this year. However, when FOMC interest rate hikes and recession scares began to really influence investors’ speculative decisions, it became increasingly difficult for large holders to justify keeping such large amounts of dollar-pegged crypto on the sidelines.
Large institutions and whales are most likely holding their money in the U.S. and world treasuries instead, as crypto is too unappealing to them at the moment with all of the uncertainty that has entered the global financial markets throughout the course of this year.
Investors and traders should keep an eye on the market caps of the largest stablecoins to see if they begin to increase, the report concluded. If they do begin to pick up, then a rise in crypto prices is justified.
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